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Oil firms forge alliances to bid for blocks

By Chryssa Liaggou

Following Greece’s official presentation last Tuesday in London of the 20 blocks to be conceded for exploration and use, global oil giants are now preparing to forge alliances between each other and with Greek enterprises with the aim of utilizing the hydrocarbon reserves beneath the Ionian Sea and south of Crete.

The full geological analysis of the data on the 20 blocks requires more than 150 million euros, while the next stage, drilling, will need investments of 2.5-6 billion euros, depending on depths.

Industry insiders say that since the end of the presentation in London, a flurry of activity has been observed on the part of oil companies aiming to forge joint bids for the tenders expected in September.

Work for the oil firms is already under way, says an oil industry official, adding that by September they will need to have decided on their participation in the auctioning process, how many and which blocks they will bid for and what their offers will be. They must also choose their partners, as both regions constitute unexplored areas for the global industry.